Public-Private Partnership Framework Policy Promoting quality services to the public Naar Mh ee UdFOREWORD The Government of Uganda has adopted a policy of Public-Private Partnership (“PPP”) as a tool for the provision of public services and public infrastructure. Cabinet approved this Policy on March 10, 2010 The application of PPP in provision of public services and infrastructure will bring about the following: Q Better utilization and allocation of public funds ° More efficient development and delivery of public infrastructure ° Ensure good quality public services a Boost economic growth and foreign direct investments Government will promote and encourage the various forms of PPP in the implementation of the National Development Plan, Medium Term Expenditure Framework and annual budgets. The choice between public and private sector provision of public services and public infrastructure will be based on a rigorous value for money assessment. Where it is determined that private sector provision of the public service, public infrastructure and related services will deliver better value for money, the choice of PPP Partners will be through a consistent, transparent system of competitive tendering. The adoption of PPP Policy represents Government’s commitment to increase private sector investment and participation in public infrastructure and provisionof public services. In addition, Public-Private Partnership is an important tool for fiscal moderation and control of public debt as budget commitments in respect of infrastructure and services provided under Public-Private Partnership arrangements are known in advance. In this respect, the authority to decide on a PPP and the determination of any expected outcome of PPP projects in the form of public services, and their implementation, will remain with the relevant Government departments and state enterprises in charge of the provision of the public service or infrastructure in question. However, PPPs impose a commitment on future budgets. Government therefore requires that any commitment arising from PPP projects be subject to approval by the Ministry of Finance, Planning and Economic Development. This is to ensure that the PPP arrangements are affordable, provide value for money and, commitments arising thereof are within the debt management limits. The Ministry will issue regulations and operating procedures to guide in the engagement of the private sector in PPP arrangements. The Ministry of Finance, Planning and Economic Development shall set up a unit (“the PPP Unit”) to advise Government on PPPs, ensure best practices are widely employed and standardize processes and documentation. The PPP Unit will also support government departments and agencies in assessing projects, choosing the best possible partner, negotiating agreements and monitoring them. Government therefore expects all components of the public sector to make use of resources available at the PPP Unit when implementing PPP. Formulation of this Policy has been carried out through an extensive consultative process, which has involved the review of policies and PPP frameworks of many countries that are implementing PPP programmes, discussions with Government departments, local authorities and key stakeholders in the private sector.In order to facilitate PPP implementation, Government will enact PPP legislation to provide for the roles and responsibilities of each stakeholder in the PPP implementation process, the institutional framework that will specify the relationship between the different stakeholders and the duties and responsibilities of the PPP Unit. The law will also provide for the protection of both the private and public sector against indiscriminate application of PPP. The PPP Unit will develop a communication strategy and plan to consult with, educate and inform the public and all stakeholders on issues of PPP. The PPP Unit will also develop and implement a capacity building programme to provide Government officers with the skills required to develop, implement and monitor PPP projects. C.. Ce ct SAM irk 24 financial analysis of the project lite cost + Identity and evaluate all material risks + Determine itprivate sectar participation will deliver value-for- money + Examines market capacity and appetite + Consider suitability of PPP arrangement + Select preferred method Key Steps: + Contracting authority submits Project Assessment and options Analysis Report (Feasibility Study Report) to Ministry of Finance + Confirm the whole of lite cost ofthe project and implications of ‘conumitments + Determine availability of resources to inweet comanitmients + Ministiy of Finance Cabinet approve projectChart 2: PPP Project Delivery Phase ey Steps Project + Appnint projec team - Project ofcer Development ‘experts and Steering Committee + Develop a Project Plan - timetable + Finalise designs, operational and service requirements + Prepare Tenuler Documents ~ EO}/RFP — Key Steps: + Invite EO! Expressions of + Bvaluate EOI hids Interest (E01) + Shorlist bidders + Key Steps Request for + Issue RFP to shor listed biddors, Proposal + Bvaluate FRP hids + Select preferred bidder _ | key steps Negotiations and ‘+ Establish negotiation teara Completion + Develop negotiation strategy + Negotiate with preferred bidder Obtain approval af Ministry of Finance for the contract terms, > MOF) Approved Key Steps Contract Contract + Financial Clase terms Management + Monitor Project Detivery + Monitor service outputs Maintain the integrity of the praject - monitor variations, public communication and awareness Key Steps End Project + Engage Termination procedures + Restart process !